NPS Charges: PFRDA Revises NPS Service Charges For PoPs; What’s New Now?

Under the National Pension Scheme (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) has revised the service charges for point of presence (PoP). Through their network of branches known as POP Service Providers (POP-SP), POPs offer the services under NPS.

About NPS PoPS

According to NPS Trust, "Point of Presence (PoPs) are entities appointed by the PFRDA to provide services to all the citizens of India to open and operate their NPS accounts. They perform functions through their network of branches called POP Service Providers (POP-SP). The operations of these POP-SPs are coordinated and controlled by the POP. A PoP-SP is the first point of contact between you and the NPS."

According to a circular from PFRDA dated April 25, 2024, "The PoPs will continue to have the option to negotiate the charges with the subscribers, but within the prescribed minimum and maximum charge structure."

NPS PoPS Charges

The charge structure for PoPs under NPS (All Citizen and Corporate) are as below as per PRRDA circulated issued on 25th April.

(i) Initial Subscriber Registration- Min. Rs 200/- to Max. Rs 400/ (Negotiable within slab only).

(ii) Initial Contribution- Upto 0.50% of contribution, subject to Min. Rs 30/- and Max. Rs 25000/- (negotiable within slab only)

(iii) All Subsequent Contribution- Rs 30 fixed

(iv) All Non-Financial Transaction- Rs. 30/- (fixed/flat and Non - Negotiable)

(v) Persistency- Rs 50/- p.a. for annual contribution Rs 1000/ to Rs 2999/-, Rs 75/- p.a. for annual contribution Rs 3000/ to Rs 6000/, Rs 100/- p.a. for annual contribution above Rs 6000/. (Only for NPS All Citizen)

(vi) e-NPS (for subsequent contribution)- 0.20% of contribution, subject to Min. Rs 15/ and Max. Rs 10,000/-. (Only for NPS All Citizen and Tier - II Accounts).

(vii) Trail commission for D-Remit Contributions- @ 0.20% of the contribution amount (Minimum Rs 15 and Maximum Rs 10,000). (Only for NPS All Citizen and Tier - II Accounts).

(viii) Processing of Exit/Withdrawal- @0.125% of Corpus with Min. Rs 125/- and Max. Rs 500/-.

A persistency fee is payable to such POPs to which the subscriber is associated for more than six months in a financial year. Minimum per transaction contribution is Rs 500/- and minimum annual contribution is Rs 1000/-. GST or other taxes as applicable, to be additional, said PFRDA in a release. Once subscribers are linked to PoPs, there will be a persistency fee per fiscal year for accounts under the NPS-All Citizen Model. After the fiscal year ends, this fee will be deducted from the units in the CRA system and paid yearly to the associated PoPs.

"The service charges on subsequent transactions by the subscribers associated with the PoPs who makes contribution through eNPS platform has been increased to 0.20% of the contribution amount subject to minimum of Rs. 15/- and maximum of Rs. 10,000/-. The revision of this service charge is effective from 15th February, 2022," said PFRDA.

"The trail commission to PoPs for D-Remit Contributions of the associated Subscribers shall be @ 0.20% of the contribution amount (Minimum Rs 15 and Maximum Rs 10,000) similar to eNPS. The applicable charges would be recovered by unit deduction on periodical basis w.e.f. 01.09.2022," PFRDA said in a circular.

The processing of exit/withdrawal charges is 0.125% of the corpus with a minimum of Rs 125/- and a maximum of Rs 500/-, according to the regulatory body.